Anyone who had money in Cognizant’s 401(k) plan at any point since December 2, 2014 — including people who left the company years ago — is in line for a share of a proposed $2.8 million settlement, and none of them will have to file a claim. The deal is not approved yet. A federal court in New Jersey is set to decide the unopposed preliminary approval motion on November 2, 2026, and until then there is no settlement website, no notice and nothing to do except make sure the plan has your current mailing address.
Status: Awaiting preliminary approval, set for decision November 2, 2026 | No claim form — payment would be automatic | No deadlines set yet | Pro rata share of $2,800,000
What the Plan Participants Claimed
The case is Milano v. Cognizant Technology Solutions U.S. Corporation, No. 2:20-cv-17793, in the U.S. District Court for the District of New Jersey. Filed in 2020 on behalf of the Cognizant Technology Solutions 401(k) Savings Plan, it claims the plan’s fiduciaries breached their duty of prudence under ERISA by failing to monitor the plan’s investments and costs.
The complaint points to three things: American Century target date funds that allegedly underperformed their benchmarks and peers; MassMutual funds the plan allegedly kept when lower-cost identical versions were available; and recordkeeping and administrative fees it calls excessive. Cognizant and the other defendants deny the claims and any wrongdoing. The case went through several rounds of motions to dismiss before the parties reached a deal with mediator Robert A. Meyer of JAMS, and the court stayed all deadlines in June 2026.
Who Would Be Paid
The proposed class is everyone who was a participant in or beneficiary of the plan at any time from December 2, 2014 through the date of the preliminary approval order, other than the defendants and their immediate families. Alternate payees under a qualified domestic relations order (QDRO) of a plan participant are included too. Former employees are covered as long as they were in the plan during that period. The plan had at least 39,958 participants in 2018 alone.
Where the $2.8 Million Goes
No per-person estimate has been published. Subject to court approval, the fund first pays:
| Attorneys’ fees | Up to one-third of the fund ($933,333.33). |
| Litigation expenses | Up to $150,000. |
| Incentive awards | Up to $10,000 for each of the five class representatives. |
| Independent fiduciary | Up to $25,000 for reviewing the settlement on the plan’s behalf. |
| Administration | The cost of notice and distribution. |
What remains is divided pro rata under the proposed plan of allocation. Given the size of the plan, individual amounts in the Cognizant 401(k) settlement are likely to be modest for most participants, but the exact formula and resulting figures depend on the plan of allocation and the court’s fee rulings.
Plaintiffs told the court that their damages estimate started in the tens of millions of dollars and was revised downward during mediation after weighing the defendants’ arguments, including that the target date funds outperformed in some years and that some claims faced standing and timing defenses.
Why There Is No Claim Form
The proposed plan of allocation calculates each share from the records of Cognizant or the plan’s recordkeeper. Nothing has to be filed and no proof is needed. The practical risk is a stale address: notice goes to the last known address in plan records, so former employees in particular should update their contact details with the plan.
No Opt-Out, But a Right to Object
Plaintiffs ask the court to certify the class under Federal Rule of Civil Procedure 23(b)(1), the type of class used for claims brought on behalf of a retirement plan. The proposed notice tells class members they cannot opt out. Anyone who disagrees with the settlement can object in writing before the deadline the court sets.
What Happens After November 2
Magistrate Judge Stacey D. Adams is set to decide the motion on the papers on November 2, 2026, without a hearing unless the court directs otherwise. If the motion is granted:
- Angeion Group, the proposed settlement administrator, will mail a postcard notice to each class member’s last known address in plan records, and email it where an address is available.
- Angeion will launch a settlement website with the notice, the settlement agreement and the deadlines.
- The court’s order will set the objection deadline and the final approval hearing, which plaintiffs propose holding at least 90 days after the order.
- An independent fiduciary will review the settlement on the plan’s behalf.
Payments come only after final approval and any appeals. No hearing date or payment date had been set as of October 1, 2026. Until the settlement website exists, the filings are on the court docket, including the proposed preliminary approval order. Our sister site will add the official link to its Cognizant 401(k) settlement page once it goes live.
Frequently Asked Questions
Do I need to file a claim for the Cognizant 401(k) settlement?
No. The proposed plan of allocation calculates shares from the records of Cognizant or the plan’s recordkeeper and requires no claim. Payment depends on the court approving the settlement.
I left Cognizant years ago. Am I covered?
Yes, if you were a participant or beneficiary in the Cognizant Technology Solutions 401(k) Savings Plan at any time from December 2, 2014 through the date of the preliminary approval order.
How much will I get?
No per-person estimate has been published. After court-approved fees of up to $933,333.33, expenses of up to $150,000, incentive awards, independent fiduciary fees and administration costs, the rest of the $2.8 million is divided pro rata.
Can I opt out?
Plaintiffs ask for certification under Rule 23(b)(1), and the proposed notice says class members cannot opt out. You can object in writing by the deadline the court sets.
Is there a settlement website?
Not yet. Angeion Group is to launch one after preliminary approval, with the notice, the settlement agreement and the deadlines.
Sources
- Court docket, Milano v. Cognizant Technology Solutions U.S. Corporation, No. 2:20-cv-17793 (D.N.J.) — CourtListener.
- Proposed Preliminary Approval Order, ECF No. 126-1 (September 29, 2026) — CourtListener.
- Plaintiffs’ Unopposed Motion for Preliminary Approval and Memorandum of Law, ECF Nos. 126 and 127, and supporting declaration, ECF No. 128.
- OpenClassActions.com — Cognizant 401(k) ERISA Settlement.
Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: Cognizant 401(k) ERISA Settlement — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.